Fitch rates Travelport loans BB-, B-

Fitch Ratings said it assigned Toro Private Holdings I, Ltd. (Travelport) an expected long-term issuer default rating of B+ with a stable outlook.

Fitch also assigned an expected senior secured rating of BB-/RR3/66% and expected second-lien rating of B-/RR6/0% to instruments issued by Travelport Finance (Luxembourg) Sarl.

Travelport's rating reflects its entrenched position in the global distribution system platform market, broadly diversified by geography, high proportion of recurring revenues, and an asset-light business model, the agency said.

These factors also facilitate strong free cash flow generation and adequate funds from operations coverage ratios for the rating, Fitch said.

However, the rating is constrained at the B category by the high opening FFO-adjusted gross leverage, moderate execution risk of maintaining market share and achieving desired synergies, which will both be central for the pace of deleveraging over the next three years, the agency noted.

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